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Issue Number:  2022-10

Inside This Issue

1. Employers urged to electronically file payroll tax returns by Oct. 31
2. Employers warned to beware of third parties promoting improper Employee Retention Credit claims
3. Adjust tax withholding now to pay the proper amount of tax
4. IRS releases information regarding natural disaster relief
5. Technical guidance
6. New Forms, instructions, and publications on IRS.gov

  1.  Employers urged to electronically file payroll tax returns by Oct. 31

Employers are urged to electronically file the next quarterly payroll tax return by the approaching October 31, 2022, due date.

E-filing is the most secure, accurate method to file returns and saves employer’s time. IRS news release 2022-184 explains the two options for filing payroll returns electronically.

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  2.  Employers warned to beware of third parties promoting improper Employee Retention Credit claims

The IRS reminds employers to be wary of third parties advising them to claim the Employee Retention Credit (ERC) when they may not qualify. Some third parties are taking improper positions related to taxpayer eligibility for and computation of the credit. Employers are always responsible for the information reported on their tax returns. Improperly claiming the ERC could result in taxpayers being required to repay the credit along with penalties and interest. 

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  3.  Adjust tax withholding now to pay the proper amount of tax

The IRS urges taxpayers to check their tax withholding while there's time left in 2022 to benefit from any necessary changes.

Events like marriage, divorce, new tax law, a new child or home purchase can all be reasons to adjust withholding. An adjustment made now will help people avoid a big surprise, such as a big refund or a balance due, at tax time in 2023.

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  4.  IRS releases information regarding natural disaster relief

• Hurricane Ian relief for victims in Florida: Hurricane Ian victims throughout Florida now have until February 15, 2023, to file various federal individual and business tax returns and make tax payments.
• Disaster relief for Alaska storm and flood victims: Victims of storms and flooding that began on September 15 in parts of Alaska now have until February 15, 2023, to file various federal individual and business tax returns and make tax payments.
• Drought relief: IRS reminds farmers and ranchers in applicable regions forced to sell livestock because of drought conditions that they may have more time to replace their livestock and defer tax on any gains from the forced sales. IRS posted Notice 2022-43 listing the applicable regions, a county or other jurisdiction, designated as eligible for federal assistance on IRS.gov.

Reconstructing records after disasters
Records may be necessary to get federal assistance or insurance reimbursement. It is important for victims of a disaster to reconstruct their records to help prove and document their losses. Here are some steps to help people reconstruct important records they may need as they begin to recover and rebuild.

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  5.  Technical guidance

• Special Per Diem Rates

Notice 2022-44 announces the special per diem rates effective October 1, 2022, which taxpayers may use to substantiate the amount of expenses for lodging, meals, and incidental expenses when traveling away from home. This notice provides the special transportation industry rate, the rate for the incidental expenses only deduction, and the rates and list of high-cost localities for purposes of the high-low substantiation method.

• CARES Act extension for amending eligible retirement plans

Notice 2022-45 extends the deadline for amending an eligible retirement plan (including an individual retirement arrangement or annuity contract) to reflect the provisions of section 2202 of the Coronavirus Aid, Relief, and Economic Security Act, and other sections of the Taxpayer Certainty and Disaster Tax Relief Act of 2020 (Relief Act).

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  6.  New Forms, instructions, and publications on IRS.gov

New Forms:

• Form 4852 (sp), Substitute for Form W-2, Wage and Tax Statement, or Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. (Spanish Version)

New Notices:

• Notice 931, Deposit Requirements for Employment Taxes

New Publications:

• Publication 1141, General Rules and Specifications for Substitute Forms W-2 and W-3
• Publication 5164, Test Package for Electronic Filers of Affordable Care Act (ACA) Information Returns (AIR)
• Publication 5165, Guide for Electronically Filing Affordable Care Act (ACA) Information Returns for Software Developers and Transmitters
• Publication 5258, Affordable Care Act (ACA) Information Returns (AIR) Submission Composition and Reference Guide

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